Logiq Receives Indonesian Government Approval to Offer Micro-Lending Services to 50 Million Indonesians
Logiq (LGIQ) has received approval from the Indonesian Government to provide micro-lending services to over 50 million members of BPJSTK, focusing on financial inclusion. This comes after a delay due to COVID-19 but aims to leverage the growing demand for digital financial services, projected to grow at a 34% CAGR to reach $8.6 billion by 2025. Logiq will roll out services initially to 5 million drivers and 6,000 government employees, allowing loans up to 20% of annual salaries. The partnership with KMSB will develop a mobile fintech platform to support these services.
- Approval for micro-lending services to 50 million BPJSTK members.
- Collaboration with KMSB to enhance financial inclusion in Indonesia.
- Initial rollout to 5 million contract and delivery drivers, and 6,000 government employees.
- Access to a rapidly growing digital financial services market, projected to reach $8.6 billion by 2025.
- Regulatory approval was delayed due to COVID-19, impacting initial rollout timelines.
NEW YORK, Sept. 13, 2021 (GLOBE NEWSWIRE) -- Logiq, Inc. (NEO: LGIQ) (OTCQX: LGIQ), a global provider of award-winning e-commerce and fintech solutions, has received approval of an annual lending rate from the Indonesian Government to provide micro-lending services to the more than 50 million members of Badan Perlayanan Jaminan Sosial Ketenagakerjaan (BPJSTK). BPJSTK manages the pensions and health benefits for these members in Indonesia.
The lending rate approval follows Logiq’s earlier announced launch of a program to provide mobile fintech services in an exclusive strategic alliance with the country’s social security program provider, Koperasi Mona Santoso Berjaya (KMSB). The program will offer microloans to BPJSTK members for personal or business use using the approved lending rate.
“This lending rate approval by the Indonesian Government represents a major step towards improving the lives of millions of Indonesians who do not have access to traditional financial services,” noted Brent Suen, president of Logiq. “The impact of COVID-19 had delayed this regulatory approval, but we can now proceed full steam ahead.”
Despite the delayed approval, the pandemic has actually accelerated the adoption of digital financial services across Southeast Asia and has driven increasing demand for contactless digital banking services. According to SGE, Indonesia’s digital financial services market is expected to soar at a compounded annual growth rate of
“We look forward to benefiting from this fast-growing demand as we support greater financial inclusion in Indonesia through our micro-lending services,” added Suen. “We also see tremendous opportunities for strong new revenue streams from microlending, mobile payments, and our eCommerce solutions with BPJSTK’s enormous user base, as well as with other future partners in the region.”
The rate approval allows Logiq to begin the initial rollout of its new mobile fintech offering to the 5 million contract and delivery drivers of Garda Digital Indonesia, a membership organization overseen by BPJSTK, as well as 6,000 government body employees. These individuals will be able to borrow up to
Under their exclusive alliance, Logiq and KMSB are developing a jointly owned and operated mobile fintech platform designed to deliver these mobile financial services throughout Indonesia. Logiq, through its Indonesian operations, is providing the platform design and technology, management, ongoing hosting and technical support. KMSB is providing the professional and financial institutional relationships that will drive the micro-lending program.
The partners are also working to launch a new marketing and advertising campaign designed to encourage adoption and regular use of the mobile fintech offerings.
Through the new fintech platform, KMSB will provide micro-lending services to government, state-owned enterprises and member organizations registered with BPJSTK. As part of managing the pensions and health benefits for contract and delivery driver members, BPJSTK serves as the social security agency that administers retirement and pension plans on behalf of Indonesian government entities and about 600,000 small- and medium-sized businesses (SMBs), with the combined total of 50 million individual members.
The mobile fintech platform is planned to be eventually introduced to all BPJSTK members, as well as to affiliated organizations, such as Mentalku, which supports the motor vehicle license administration, and Sehatku, a medical clinic organization network. Members will also be able to access Logiq’s PayLogiq™ e-Wallet and GoLogiq™ hyper-local food delivery mobile platforms.
Logiq announced last week it has partnered with Mentalku, the exclusive government-licensed provider of psychological testing required for driver license applications and renewals in Indonesia, to offer a mobile payment option for Mentalku’s testing services.
Logiq and the principals of KMSB who own Mentalku are planning to offer a new ‘SuperApp’ that incorporates microloans for BPJSTK members, driver license tests thru the app, fees paid thru the Logiq e-Wallet, and ancillary services, such as telemedicine and consultations.
Logiq and KMSB plan to complete the official launch of the new mobile fintech platform for drivers of Garda Digital Indonesia by the fourth quarter of 2021.
About Koperasi Mona Santoso Berjaya
In these recessionary times and the era of a pandemic, KMSB was formed as a national economic movement and business entity that is able to participate in maintaining and improving the quality of life for all Indonesians and increase the competitiveness of domestic production. KMSB is engaged in savings and loans for generating new opportunities for Indonesian workers, and is dedicated to building a reliable distribution network for consumers that addresses their needs at a fair price. KMSB helps to create new economic opportunities for its members.
About Logiq
Logiq, Inc. is a U.S.-based leading global provider of e-commerce and fintech business enablement solutions. Its DataLogiq business provides a data-driven, end-to-end e-commerce marketing solution. Its AI-powered LogiqX™ data engine delivers valuable consumer insights that enhance the ROI of online marketing spend. The company’s Fixel technology offers simplified online marketing with critical privacy features.
In its AppLogiq business, Logiq’s platform-as-a-service, branded as CreateApp™, enables small- and medium-sized businesses worldwide to easily create and deploy a native mobile app for their business without technical knowledge or background. CreateApp™ empowers businesses to reach more customers, increase sales, manage logistics, and promote their products and services in an easy, affordable, and highly efficient way. CreateApp™ is offered in 14 languages across 10 countries and three continents, including some of the fastest-growing emerging markets in Southeast Asia. The company’s PayLogiq, branded as AtozPay™ in Indonesia, offers mobile payments, and GoLogiq, branded as AtozGo™ in Indonesia, offers hyper-local food delivery services. Connect with Logiq: Website | LinkedIn | Twitter| Facebook.
Important Cautions Regarding Forward-Looking Statements
This press release contains certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This press release also contains forward‐looking statements and forward‐looking information within the meaning of Canadian securities legislation that relate to Logiq’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward‐looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward‐looking statements. No assurance can be given that these expectations will prove to be correct and such forward‐looking statements included in this press release should not be unduly relied upon.
These statements speak only as of the date of this press release. Forward‐looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Logiq’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. In particular and without limitation, this press release contains forward‐looking statements regarding our products and services, the use and/or ongoing demand for our products and services, expectations regarding our revenue and the revenue generation potential of our products and services, our partnerships and strategic alliances, the impact of global pandemics (including COVID-19) on the demand for our products and services, industry trends, overall market growth rates, our growth strategies, the continued growth of the addressable markets for our products and solutions, our business plans and strategies, our competitive position in our industry, and other risks described in the Company’s prior press releases and in its filings with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K and any subsequent public filings, and filings made pursuant to Canadian securities legislation that are available on www.sedar.com, including under the heading "Risk Factors" in the Company's Canadian Prospectus.
Logiq undertakes no obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Logiq to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward‐looking statement. Any forward‐looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
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Brent Suen, President
Logiq, Inc.
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